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AGB Foundation Leadership ForumFt. Lauderdale, Florida

January 29, 2019

The Entrepreneurial & Collaborative Foundation –

Supporting Institutional Mission through Real Estate

Development and Creative Ventures

The Entrepreneurial & Collaborative Foundation

Facilitator:

Jeff Rountree, CEO, University of Mary Washington

Foundation

Panelists:

Tim R. Rose, CEO, University of Virginia Foundation

Tara F. Saunders, Executive Director, Old Dominion

University Real Estate Foundation

Douglas L. Hornsby, CEO, Christopher Newport University

Foundations

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University of Virginia

Foundation

5,200acres

1,700,000sq ft improved real estate

$400,000,000tax assessed value

40employees

71properties

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MISSION AND BOARD

STRUCTURE

UVA Directors Public Sector Directors

Rector or Designee Real Estate Developer

Buildings & Grounds Chair, Board of Visitors Attorney & Mortgage Insurance Executive

Finance Chair, Board of Visitors Real Estate Investor

President Hospitality REIT Chief Financial Officer

Exec. Vice President & Chief Operating Officer Attorney & Investor

Vice President for Advancement Real Estate Developer

Vice President for Research Investment Management President

Global Hospitality Design & Construction Executive

Construction Company President

Construction Company Chief Executive Officer

Real Estate Investor

Real Estate Chief Executive Officer

Real Estate Attorney

To handle real estate matters on behalf of the University

To provide administrative and financial services to University-related entities

SHARED SERVICES CLIENTS

ALUMNI BOARD OF TRUSTEES

CURRY SCHOOL OF EDUCATION FOUNDATION

LEIFUR EIRIKSSON

FOUNDATION

SCHOOL OF ARCHITECTURE

FOUNDATION

UVA COLLEGE AT WISE

FOUNDATION

UVA HEALTH FOUNDATION

UVA MEDICAL SCHOOL

FOUNDATION

PRESIDENTS FUNDS (6)

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RESEARCH PARKS

UVA Research Park

Fontaine Research

Park

CCAMBlue Ridge

Central Grounds

HOSPITALITY

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HISTORIC PROPERTIES

ESTATES

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LAND ACQUISITIONS

CONTINUING CARE RETIREMENT

COMMUNITY

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ADVANCING THE MISSION

• Capital Campaign

• Acquisition Gifts

• Housing

• Current Programs• Athletics

• Hospitality

• Research

• Office

ONLY ONE CUSTOMER:

UNIVERSITY OF VIRGINIA

• Board Overlap

• Staff Relationships

• Property Acquisitions

• Project Funding

• Land Planning & Use

• Architectural Design

• Debt Management

Board of Visitors

UVA Leadership

UVA Foundation

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Tim R. Rose, Ph.D.

UVA Foundation

P.O. Box 400218

Charlottesville, VA 22904

434.982.4848

timrose@uvafoundation.com

ODU Real Estate Foundation

AGB Foundation Leadership

Conference

Fort Lauderdale, Florida

January 28-29, 2019

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OLD DOMINION UNIVERSITY

University Profile

• 24,670 Students (19,612 Undergrad; 5,058 Graduate)

• Top Programs

• Modeling & Simulation • Oceanography• Nuclear Physics • Engineering Management• Business Administration

Enrollment Summary

• Freshmen, sophomores, and juniors are traditional age (18-24) and primarily full-time

• International students represent 88 countries with most from China, India and Saudi Arabia

• 25% enrollment are military affiliated

• 23% of students take classes purely online

• ODU’s ethnic diversity mirrors the changing national demographics

• ODU consistently retains students around 80%

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Old Dominion UniversityReal Estate Foundation

• 501 (c)(3)

• Purpose – Acquiring,

Managing, Building Real Estate

projects on behalf of the

University

• Formed in 1994 in Anticipation of

University Village Development

• 13 Members (University President – Ex Officio)

• 2 Full-Time REF Staff Members

• 8 Full- Time Shared Accounting Staff Members

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University Village Apartments : Phase I & II

• Opened Phase I in 2003 and

Phase II in 2004, a $55 million

project consisting of 500,000 sq. ft.

• The ground floor fronting

Monarch Way is managed and owned by the REF and contains

approximately 50,000 square feet

of retail space.

• Tax exempt bonds backed by

LOC issued to LLC

• 960 beds, 276 furnished one-, two- & four- bedroom units

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Marriott SpringHill Suites

• 114-suite hotel, 24-hour business

center, indoor pool and spa, and Monarch Sports Grille

• Foundation issued RFP, BBL Development Group, LLC selected

• Foundation offers 50-year ground lease, BBL Construct/Own/Manage

• Developer financed using combination of Empowerment Zone bonds and New Market Tax Credits

• Opened in 2007, $12M project

Monarch Sports Bar & Grill

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Village Bookstore

• Follett Higher Education

Group won a 15-year contract to manage the bookstore. The University Bookstore is located on the first three floors. University

offices on third and fourth floors.re.

• Financed $5.5 M with Bank of America, Follett Contributed $3 M

• Opened 2007, $8.5 M project, 42,000 sq. ft.

Innovation Research Park@ODU

• Building I opened April 2007, Building 2

opened September 2009, $50M Project

• 200,000 square feet of office research and wet lab space

• Foundation offered 50-year ground lease, Wexford Equities, LLC

construct/own/manage

•Annual CAM Allowance to ODU

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The District Apartments

• Opened August 25, 2010

• $60 M project, 424,000 square

feet

• 310 apartments, 930 beds

• 1,2,3 and 4 bedrooms

• Financed by Bank of America with Letter of Support from the University, 20% equity required, taxable bonds through NRHA

Tri-Cities Center

• Opened in 2007, $6.2 M project.

• University sought assistance of the REF

due to the New-Market Tax Credit related financing.

• Financing saved University $5,000,000 due to municipal grants, developer equity and tax credit savings.

• REF maintained ownership of the land

beneath the Tri-Cities Center and leased it to the University. Unwinding of tax credits in 2014.

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Presidents House

• Opened in 2010, $2.2 M project

• REF managed the demolition

design and construction of the new 5,400 sq. ft. President’s House.

• University is master leasing the property from the REF and covers all costs incurred.

• RFQ/RFP issued for a contractor

• RFP was issued for financing

Barry Art Museum

• $40M gift from Richard and

Carolyn Barry

• RFQ for architect, contractor, and financing

• REF owned and leased to the university for eight years

• University responsible for maintenance

• Museum Foundation

established to handle daily operations, future planning and acquisitions

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THE UNIVERSITY AS A DEVELOPER –

WHY?

• To Generate Supplemental Revenue Streams• To Expand the Campus• To Eliminate Blight or Address Crime• To Promote Economic Development• To “Prime the Pump” (Supplemental Market Forces)• To Provide Co-Curricular Facilities• To Improve the Competitive Standing (Image)• To Create a Destination• To Circumvent State Procedures or Lack of Authority

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Tara F. Saunders

Executive Director ODU Real Estate Foundation

tsaunders@odu.edu

757-683-3418

Christopher Newport University

Real Estate Foundation

An Entrepreneurial Foundation Supporting our University through Real Estate Development

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Christopher Newport University

Christopher Newport University- Who We Are -

➢Founded in 1960 by the College of William & Mary (1693) – we are only 58 years old - a commuter college until 1996

➢Approximately 5,000 students, 280 Full Time Faculty, ~260 acres

➢University President, Paul S. Trible, former United States Senator

➢12th in the Nation 4-year graduation rate

➢Dedicated to a Liberal Arts Education

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Christopher Newport University- Who We Are, Where we are -

➢Located in Newport News, Virginia, between…➢ the Colonial Capital - Williamsburg VA – the capital of Virginia from 1705 –

1779➢Norfolk VA and Virginia Beach VA

➢From CNU to UVA in Charlottesville VA is 147 miles

➢From CNU to University of Mary Washington in Fredericksburg VA is 123 miles

➢From CNU to ODU in Norfolk VA is 25 miles

➢Who the heck is ‘Christopher Newport’ anyway?

Captain Christopher Newport

✓ (1561–1617) was an English seaman and “Privateer”

✓Captain of the Susan Constant the largest of three ships which brought settlers to ‘New World’ to found Jamestown in 1607

✓The first permanent English Settlement in North America.

✓Founding the Colony he sent back, “Newport’s News” to England – thus –“Newport News, Virginia”

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Ferguson Center for the Performing Arts $70M – designed by IM Pei

Tony Bennet said, "They don't make theaters like this anymore!“

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The Board of Real Estate Foundation ❑Elected Trustees❑3 sets of 3 Trustees❑Grouped into ‘the Class of 2019”❑3 year terms

❑Ex-Officio Trustees❑University President❑University Executive Vice

President❑Director of University

Advancement

❑Appointed Trustees❑2 members chosen by Rector of

Board of Visitors of University

What does Christopher Newport University Real Estate Foundation do?

We Build –We Buy –We Develop –We Manage –We make Money❖CNU Apartments – Student Residences – 360 Students in 108 apartments

in 5 buildings❖$20M in 2001

❖CNU Village – mixed use (i) Student Residences 200,000 sf, (ii) Shopping Center 25,000 sf❖$31M in 2004

❖Rappahannock River Hall in 2013 – Student Residences – 457 beds❖$42M including Parking Garage

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Christopher Newport Hall – graduation 10,000 attendees

What does Christopher Newport University Real Estate Foundation do?

We Build –We Buy –We Develop –We Manage –We make Money❖Bought and renovated 40,000 sf Office Building, with a SunTrust Bank

branch

❖Bought a United States Post Office

❖Bought and renovated 110,000 sf Class-A Shopping Center with Outparcels: Chic-Fil-A, Dunkin Donuts, Firestone Auto

❖Developed a Starbucks & Chipotle adjacent to CNU Village

❖Sales/Leaseback of $11M Medical Park from Riverside Hospital

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Starbuck and Chipotle opened May 2018

Rappahannock River Hall – inside the Courtyard

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Advancing the Mission of Higher EducationHow do we do that?

❖ We are THE Premier economic force in the University District

❖ Ca$h - Deliver free cash flow to University of ~$2M / year to be used as they see fit❖ Unrestricted Cash❖ Support Student Scholarships

❖ What’s the Fair Market Value of Foundation holdings ?❖ $200,000,000 - $250,000,000

Advancing the Mission of Higher Education

❖ Dorms Matter - Build student residences cheaper, faster, than a Commonwealth Project - on land we own– no ‘State procurement regulations’❖ Princeton Review - #6 in ‘Dorms Like Palaces’❖ (just below: Bryn Mawr, Loyola, Smith College …)

❖ We do it all….. with No University Debt❖ We finance with Bank Tax-Exempt Bonds❖ Was $143,622,000❖ Now $128,000,000 - $15.6M Curtail → 17 years

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The Luter School of Business – the Atrium Entrance

Advancing the Mission of Higher Education

❖ We help answer the question:❖ Why choose Christopher Newport University?

❖ Plenty of choices – We all compare❖ US News & World Report❖ In the Top-Ten ‘Regional Southern Universities’

❖ So what ?? ❖ What happens if there is no Real Estate Foundation?

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Shenandoah River Hall: Mixed Use – Student Residences – Office Space

Ferguson Center for the Visual Arts$54M

Starts in 2019

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Advancing the Mission of Higher Education

What happens if there is no Real Estate Foundation?

❖ Without an Entrepreneurial Real Estate Foundation Economic Machine…

❖ no control of adjacent property❖ No Starbucks, no Chipotle, no Shopping Centers❖ How, where, when can University expand?❖ So… Control Your Future!

CNU Real Estate Foundation

Next project…

Colonize Mars

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The Entrepreneurial & Collaborative Foundation

14 Four-year Universities

24 Community Colleges

Higher Education Real Estate Roundtable: Quarterly

meetings of State and Foundation employees who oversee real

estate.

VA Higher Education Foundations’ CEO Conference:

Annual conference of all foundations leaders in Virginia.

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Questions ?

Jeff Rountree jeff.rountree@umwf.org

Tim Rose timrose@uvafoundation.com

Tara Saunders tsaunders@odu.edu

Doug Hornsby dhornsby@cnu.edu